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September 8, 2005
Natural Gas Prices To Spike
By: Rowan Wolf
If you have been stunned by gasoline cost spikes, then hang onto your hat as natural gas prices could jump 71% this winter. This is bad news for anyone using natural gas for heating, and for gas-fired electric generation. Natural gas has been pushed as a "cheap" alternative to petroleum. That is no longer true. The natural gas peak is not far behind the oil peak.
The Energy Information Administrations says that the:"Midwest will increase as much as 71%, while heating oil prices in the Northeast could rise 31%. Electricity prices in the South could jump 17%."
The increase is an aftereffect of Katrina which has left damaged refineries and decreased oil and gas production in the Gulf by 70%.
Overall, natural gas was expected to increase by at least 50% over last year's prices before Katrina. The Contra Costa Times reports an average natural gas cost increase of 20% after the storm. That comes to an average price increase of over 70% this winter. That would mean that those areas where it is expected to jump by 71% could potentially see a 120% plus increase.
Midwesterners, break out the extra blankets.
Posted by Rowan at September 8, 2005 7:03 AM Category: Peak Oil --- Social Implications